Revenue sharing is a crucial topic for a country’s economy, and the recent FAAC meeting in July in Abuja highlighted the importance of this issue. Under the chairmanship of the Minister of Finance and Economic Coordinator, Wale Edun, the figures were released, revealing an impressive total sum of N1.354 trillion.
This amount is made up of statutory revenue of N142.514 billion, VAT revenue of N523.973 billion, Electronic Money Transfer Tax (EMTL) revenue of N15.692 billion, foreign exchange differential revenue of N472.192 billion. billion naira and an increase of 200 billion naira.
The FAAC statement also revealed that a total of N2.483 trillion was available as of June 2024. Collection fee deductions amounting to N92.112 billion were made, while transfers, interventions and Reimbursements totaling N1.037 trillion were made.
In June, a gross statutory income of N1.432 trillion was collected, an increase of N208.773 billion from the N1.223 trillion received in May. Additionally, a gross income of N562.685 billion from VAT in June was recorded, surpassing the amount of N497.665 billion available in May by N65.020 billion.
The distribution of the total N1.354 trillion was as follows: the Federal Government received a total amount of N459.776 billion, State Governments received a total amount of N461.979 billion and local councils government received a total of N337.019 billion. Additionally, a total amount of N95.598 billion (or 13% of mining revenue) was shared with the beneficiary states as diversion revenue.
This FAAC meeting once again highlighted the importance of transparency and efficiency in the management of government revenues, highlighting the positive impact that these funds can have on the economic development of the country.